Texas man pleads guilty to illegal exports to Russia, China

Peter Zuccarelli of Plano, Texas, conspired to illegally export U.S.-made radiation hardened integrated circuits to China and Russia for their respective space programs, according to a statement from the U.S. Department of Justice.    Peter Zuccarelli, 62, of Plano, Texas, has pleaded guilty to conspiring to illegally export U.S.-made radiation hardened integrated circuits (RHICs) to China and Russia for their respective space programs, according to a statement from the U.S. Department of Justice.
   Zuccarelli attempted to secure the circuits for export without the required Commerce Department licenses, a violation of the International Emergency Economic Powers Act (IEEPA).
   According to court documents, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia between June 2015 and March 2016. Due to their military and space applications, exports of RHICs are strictly controlled.
   Zuccarelli received these orders from his co-conspirator, as well as payment of about $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers, the Justice Department said.
  The department added that Zuccarelli falsely certified with the suppliers that his company, American Coating Technologies, was the end user of the circuits. He then removed them from the original packaging, repackaged them, falsely declared the circuits to be “touch screen parts,” and then shipped out of the United States without the required licenses.
   At sentencing, Zuccarelli faces a maximum of five years in jail and up to a $250,000 fine. A sentencing hearing will be scheduled after the U.S. Probation Office completes its investigation.